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Sears meets 1Q estimates
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April 17, 2000: 12:29 p.m. ET
No. 2 retailer hits Wall Street target with 71% profit gain from a year ago
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NEW YORK (CNNfn) - Sears Roebuck and Co. reported a 71 percent increase in first-quarter net earnings Monday from the year-ago quarter on the strength of higher sales. But the numbers just met the expectations of Wall Street analysts.
For the quarter, the nation's No. 2 retailer, based in Hoffman Estates, Ill., posted net income of $235 million, or 65 cents a share, compared up from $146 million, or 38 cents a share, a year earlier.
The results match the 65 cents a share consensus forecast of analysts surveyed by earnings tracker First Call/Thomson Financial.
Revenue rose to $8.97 billion, versus $8.66 billion in the comparable period one year ago.
 Sears attributed the gains to improvements in its full-line stores and its Sears Canada stores. Reduction of outstanding debt from delinquent credit accounts and supply chain improvements also contributed to the strong quarter, officials said.
Thomas Tashjian, an analyst with Banc of America Securities, said the company's solid performance during a time when retail sales normally slacken, particularly with Easter occurring fairly late this year, reflected improvements in its inventory and supply chain management.
"Inside the numbers we saw a nice swing in the performance of the retail profitability," Tashjian said. "That's also clearly the result of the supply chain manageability in the fourth quarter. It's good to see that kind of performance in the retail business."
Sales of appliances, lawn & garden items, and sporting goods contributed to a 2.7 percent rise in domestic comparable store sales, said Arthur Martinez, the company's chairman and chief executive officer. Apparel sales slipped somewhat, a result of the Easter holiday shift, but homeware, fine jewelry and cosmetics and fragrances continued to move well, Martinez said.
Revenue at Sears Canada totaled $966 million in the quarter, a 19 percent increase from the year-ago period.
Credit revenue from domestic customers rose 0.8 percent to $1.07 billion.
Tashjian said he sees strong sales continuing as Sears continues improve its supply chain management and targets niche markets in its online ventures rather than go after the broader retail sector.
 For example, earlier this month Sears began offering tools and lawn and garden equipment on its Web site. That followed the company's announcement of an online partnership with home improvement maven Bob Vila in which Vila would offer home improvement tips to customers via the new Internet site, Bobvila.com.
In addition, a new online business-to-business exchange announced in February with Carrefour, Europe's largest retailer, should further help Sears reduce its supply chain management costs, Tashjian said.
Shares of Sears (S: Research, Estimates) gained 9/16 to 37-1/8 in late-morning trading on the New York Stock Exchange Monday. 
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Sears
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